Almond milk and other plant-based beverages continue to gain popularity, and that’s good news for the sponsorship industry.

Sales in the non-dairy milk category rose 8.8 percent to $1.9 billion in 2015, per Mintel, a market research firm. The category posted an estimated 7.6 percent increase at inflation-adjusted prices, suggesting that much of the growth is from increased volume consumption rather than price increases.

Mintel expects sales of non-dairy milk to grow 50 percent from 2015 to 2020, driven by new product innovation and better-for-you positioning as a dairy milk alternative.

Most non-dairy milk segments are experiencing strong growth. Almond milk continues to lead in segment sales, per Mintel, while third-place coconut milk also has seen strong gains and is expected to surpass the struggling soy milk category by 2018. The “other” non-dairy milk segment—which includes plant-based milks made from cashews, hazelnuts, hemp, etc.—saw stellar growth in 2015, further supporting overall category development as consumers look to expand their non-dairy milk consumption beyond the leading segments (almond, soy and coconut milk).

The popularity of non-dairy beverages has resulted in new sponsorship activity across multiple brands and categories.

Califia Farms this year has partnered with a handful of music festivals (Arroyo Seco Weekend; FYF Fest, Kaboo Del Mar, Panorama, etc.) on behalf of its cold brew coffee and almond milk creamers.

In addition, White Wave is sponsoring and/or has a vendor presence at a handful of events including the Boulder Creek Festival, Groupon Bite of Seattle and Rock ‘n’ Roll Marathon Series events. The company is sponsoring some of the events on behalf of multiple products. For example, White Wave sponsored the May 27-29 Boulder Creek Festival on behalf of its corporate brand, under which it promoted Silk, So Delicious, Vega and other non-dairy and dairy brands.

The Bite of Seattle also works with Daiya Foods, a company that was recently ranked the fastest-growing plant-based food company in America by SPINS, a provider of retail consumer insights for the natural and specialty products industries.

“Events are a great place to market (non-dairy products) because people can try the products, and, as we know, it needs to taste good or better than the consumer’s other choices,” said Brett Gorrell, partner with Festivals Inc., owner of the Groupon Bite of Seattle, Taste of Tacoma and other events.

In addition, Blue Diamond gains sales rights for Almond Breeze milk as part of its 2016 jersey patch sponsorship with the Sacramento Kings.

Soy milk continues to lose ground
Second place soy milk continues to decline as consumers question its overall healthfulness and as other plant-based milks, like almond and cashew, trend. The segment makes up approximately 19.3 percent market share in estimated 2015, while sales losses limit greater overall category growth as almond milk, coconut milk and others climb upward. Soy milk is forecast to be surpassed by the “other” non-dairy milk segment by 2017 and coconut milk by 2018, as consumers look to other plant-based milks to meet their drinking occasions.

Non-dairy milk drinkers are most likely to look for offerings that are natural. Natural trends remain strong as consumers become warier of the harmful effects of artificial ingredients, particularly in today’s health-centric market. While many non-dairy milk products may already be natural, consumers are looking for reassurance. Other related attributes also are trending, with no artificial ingredients and no artificial sweeteners important to one in five consumers when choosing non-dairy milks, and more than one in 10 looking for GMO-free non-dairy milk offerings.

Emphasis taste, health benefits
Consumers are most likely to drink non-dairy milks because they enjoy the taste, which demonstrates the importance of good beverage flavor as it relates to repeat consumption. Consumers also drink non-diary milk for its nutritional content. Approximately a quarter of consumers drink non-diary milk for a variety of health reasons, addressing both current health issues and preventive health measures.

New opportunities with functionality
Consumers are most likely to say extra protein and added vitamins and minerals would encourage them to increase their non-dairy milk consumption. This aligns with consumers’ top reasons for drinking non-dairy milk.

There are also niche opportunities to appeal to consumers. Products with functionality energy continue to trend, yet consumers also exhibit interest in products that help them relax and de-stress as they look to balance their hectic lifestyles. A new opportunity for non-dairy milks taps into beautify benefits, and opportunities are not limited to women; one in five men aged 18-24 is interested in dairy milk innovation that promotes beauty benefits.

What it means
Most consumers drink non-dairy milk, and they drink a variety of types. However, nearly all non-dairy milk drinkers also drink dairy milk, and many view the two categories’ key attributes similarly—such as flavorful, fresh, and even high in calories. Non-dairy milks have great opportunity for growth as consumer interest in the beverage stays strong, but the category will need to continue to evolve to meet drinker’s preferences and needs, and better compete with dairy milk’s current penetration.

The high percentage of non-dairy milk drinkers that also drink dairy milk demonstrates the need for companies and brands to stand out and strengthen their application to be more than just a preference. Positive health perceptions benefit non-dairy milk, but continued innovation with flavor, functions and usage occasions will help it stay relevant.

IEG Sponsorship Report

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